Taiwan’s new-car market defied the global slump on 5 April 2020, posting 37,279 registrations for March, 15.1 percent above March 2019 and 36.3 percent above February 2020, according to the Ministry of Transportation and Communications. First-quarter volume crossed 100,000 units, up 8.2 percent year-on-year, even as COVID-19 shut factories and showrooms on every other continent. Dealers credit cheap fuel, commuters’ fear of crowded buses, and the island’s early containment of the virus.
Consumers swap trains for steering wheels
Taiwan recorded only 363 confirmed cases by month-end, so the government never ordered a full lockdown. Subway ridership still fell 15 percent in Taipei, and taxi bookings dropped 20 percent, pushing white-collar workers toward private cars. “People want a sealed cabin they can disinfect themselves,” said James Shih, sales director at Hotai Motor, Toyota’s local distributor. “Showroom traffic dipped the first two weeks of March, then roared back once the stock market steadied.”
Forecourt prices for 95-octane gasoline have slipped to NT$22.2 per litre, down 18 percent since January, trimming the annual cost of a 20-km daily commute by roughly NT$7,000. That saving covers half a monthly instalment on a NT$600,000 compact, a calculation dealers now highlight in Facebook ads. “We sold every Corolla crossover we could unload from the port,” Shih added.
Japanese brands tighten grip
Toyota and Lexus combined captured 31.5 percent of March volume with 11,726 units, widening the gap over every rival. Mitsubishi held second at 3,952 registrations, lifted by the Colt Plus small wagon popular with first-time buyers. Mercedes-Benz took bronze with 2,693 cars, proving that luxury buyers are less sensitive to recession headlines.
Honda, Nissan and Mazda rounded out the top six, leaving Ford and Volkswagen to watch from the sidelines. “Taiwanese loyalty to Japanese reliability is almost cultural,” said James Chao, Asia-Pacific analyst at IHS Markit. “Dealers also stock parts aggressively, so service waits are short, crucial when global supply chains are jammed.”
Tesla cracks top ten for first time
Tesla Motors delivered 1,500 Model 3 sedans in March, enough to rank eighth and outsell Subaru, BMW and Ford. The California-based firm cut the local sticker to NT$1.55 million after a March 1 tax revision that zeroed the 10 percent commodity tax on pure-electric vehicles. Buyers also pocket a NT$350,000 government subsidy that survived belt-tightening elsewhere.
“Taiwan’s charging grid is still patchy outside Taipei, but commuters with suburban garages see the math,” said James Chen, managing director of Tesla Taiwan. He expects April deliveries to hold near 1,300 units despite port congestion. The island now counts 2,800 public chargers, up 40 percent year-on-year, and state-owned CPC Corp has pledged 200 new fast-charge bays at highway rest stops by July.
April outlook darkens as supply lines fray
Dealers warn the March surge could be a one-off. “We are eating inventory built before Chinese New Year,” said James Lien, secretary-general of the Taiwan Auto Sales Association. “By late April, some popular colours and trims will be gone.” More than 80 percent of vehicles sold on the island are imported as complete units or knock-down kits, and plants in Japan, Europe and the United States are only now restarting.
Hotai has already told buyers that the RAV4 hybrid may face a six-week wait; Mercedes dealers quietly removed the C-Class sedan from online configurators last week. The association has trimmed its 2020 forecast to 420,000 units, down from 440,000, still a hair above 2019’s 417,000. “If the virus flares again or ports throttle capacity, we could see May registrations fall below 25,000,” Lien cautioned.
Government officials remain outwardly upbeat. “Taiwan’s car market is a bright spot in Asia,” transport minister Lin Chia-lung told reporters on 3 April. “We will keep showrooms open and review any import delays case by case.” Yet even he conceded that the second-half recovery depends on “how quickly Detroit, Nagoya and Stuttgart get back on line.”
For now, drivers queue outside newly installed charging stations while sales staff wipe door handles after every test drive. The island’s auto sector has dodged the first wave of COVID-19, but the next test will be whether containers of engines and semiconductors can reach Keelung port as fast as commuters’ new appetite for keys.
